A Mutual Fund Manager Must Decide How Much Money to Invest

question 10

Multiple Choice

A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to invest in Pacific Oil (P) .At least 60% of the money invested in the two oil companies must be in Pacific Oil.A correct modeling of this constraint is

• A)0.4A + 0.6P > 0.
• B)-0.4A + 0.6P > 0.
• C)0.6A + 0.4P > 0.
• D)-0.6A + 0.4P > 0.

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Definitions:

Voucher

A special form for recording relevant data about a liability and the details of its payment.

Cash Payment

is the act of settling a transaction or discharging a debt by using physical currency or through a digital medium representing immediate value.

Internal Control Objectives

The goals aimed at ensuring the reliability of financial reporting, compliance with laws and regulations, and effectiveness of operations.

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.